About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
 
Support our sponsors:
sharemarket

NZ manufacturing keeps growing in December quarter, rundown in stocks bodes well for 2013

Friday 8th March 2013

Text too small?

New Zealand manufacturing volumes continued to grow in the final three months of 2012, and a rundown in stocks outside food and beverage bodes well for the sector this year as construction gets underway in Canterbury and Auckland.

Total manufacturing sales volumes rose a seasonally adjusted 1.5 percent in the three months ended Dec. 31, slowing from a 2.5 percent gain in the September quarter, according to Statistics New Zealand. The value of manufacturing sales was flat at a seasonally adjusted $22.85 billion. Volumes were up 5.7 percent from the same period a year earlier, while values were down 0.7 percent on an annual basis.

Metal product manufacturing sales volumes rose 5.4 percent, and values climbed 6.6 percent to $2.31 billion, leading gains in the quarter. Petroleum and coal product manufacturing sales volumes gained 6.4 percent and values were up by the same amount to $1.92 billion.

Meat and dairy manufacturing, which accounts for 30 percent of the sector, showed a 1.1 percent fall in volumes and a 4.4 percent decline in sales to $6.86 billion.

"While still an increase, this is something of a reversal from the previous quarter, when high meat and dairy manufacturing sales more than compensated for falls in other manufacturing industries," industry and labour statistics manager Blair Cardno said.

Stripping out the meat and dairy sectors, manufacturing sales volumes rose 1.3 percent and sales were up 1.8 percent to $15.99 billion. The volume of closing stocks of finished goods shrank 6.8 percent in the quarter, and was down 2.9 percent from a year earlier.

Doug Steel, economist at Bank of New Zealand, said the increase in volumes continued the trend of the past three quarters, though "prices were not all that flash."

"The rundown in stocks give you a bit of optimism for 2013 if demand does strengthen on construction," he said.

The official government figures come the same day as a New Zealand Manufacturers' and Exporters' Association survey showed an increase in export sales in January compared to a year earlier.

The NZMEA has been a vocal critic of the government and Reserve Bank for not providing more support for local firms competing with cheap imported rivals and reduced competitiveness abroad due to the strength of the currency.

Last month, the Bank of New Zealand-Business NZ performance of manufacturing index showed the sector grew at its fastest pace in eight months in January, with the strongest growth in Canterbury/Westland probably reflecting demand for building materials.

BusinessDesk.co.nz



Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.
Bookmark and Share   Printable version
Related News

Ebos takes 25% stake in Good Price Pharmacy Warehouse, flags further acquisitions
TeamTalk posts full-year loss on Farmside charge that threatened covenants
NZ dollar gains as Fonterra affirms milk price, announces Chinese joint venture
Fonterra to offer at least 20% premium for Beingmate shares in deal to drive Anmum sales
Smiths City shares climb 8% after Edison report says stock undervalued
Fonterra to buy 20% stake in China's Beingmate, sell Darnum plant into JV
NZ food prices fall in July, cementing expectations interest rates are on hold till 2015
Christchurch property investor Ridgecrest wins IAG policy appeal in Supreme Court
UPDATE: Ebos outlook subdued after Symbion acquisition driven profit boost
UPDATE: Air NZ shares hit 2-month high on profit growth, fatter dividend

 
Previous News
Bond
News Alerts
Breaking News 
After the Bell (daily) 
Gold News 

Unsubscribe/Update »

RSS feeds »
Twitter »
Facebook »

Most Commented On
  forex centre
cfd centre
options centre
NZX 15 Index
   





© Copyright 2014 MoneyOnline Ltd & Investment Research Group Ltd. All Rights Reserved.